Ten tipped to post first half profit JORDAN CHONG March 30, 2010...

Ten tipped to post first half profit

JORDAN CHONG
March 30, 2010 - 3:49PM
AAP

Ten Network Holdings Ltd is expected to post a profit for the first half of fiscal 2010, turning around from a loss in the previous corresponding half amid an improving advertising market, analysts say.

Goldman Sachs JBWere estimates Ten will record net profit of $60.7 million for the six months to February 28, 2010.

"We believe TEN is very well placed to benefit from our forecast 2010 ad market recovery," Goldman Sachs JBWere analysts Christian Guerra and Owen Birrell said in a research note dated March 26.

The media group owns the Network Ten television station and outdoor advertising company EYE Group.

If in line with forecasts, it would mark a turnaround from the net loss of $79.7 million recorded in the first half of fiscal 2009, which included $138.4 million in writedowns related mainly to its outdoor advertising assets.

Ten made a $89.4 million loss for the 12 months to August 31, 2009.

JP Morgan analysts Colin Morawski, Laurent Horrut and Thomas Beadle expected Ten to achieve normalised net profit after tax (NPAT) of $54 million for the first half of fiscal 2009, down slightly from $57 million recorded in the prior corresponding period.

"As a result of the adjustments to our TV ad revenue forecast, we now estimate Ten TV revenue will grow at three per cent in 1H10, and nine per cent for FY10, much of which is attributable to Ten's improved ratings share," they said in a research note dated March 19.

Macquarie Equities Research analysts Alex Pollak and Derryn Chin said in a research note dated March 30 they expected Ten to record normalised NPAT of $52 million.

Ten lifted its share of television advertising revenue to 30.08 per cent in the six months to December 2009, from 28.328 per cent in the six months to June 2009, according to figures from Free TV Australia.

Network Ten chief executive Grant Blackley said this month the network would unveil a third digital channel later this year, having launched all-sport offering ONE a year ago.

"As a company with relatively low levels of debt and a broad and supportive shareholder base, we do not have any structural or financial impediments to implementing these strategies," Mr Blackley told the Australian Broadcasting Summit on March 23.

Ten is due to release its first half results on Wednesday.

2010 AAP

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